Best fixed deposit rates in Kenya

Fixed deposit accounts are growing in popularity in Kenya. People want safety for their money, and these accounts have proven to be a good solution. This article is going to examine the different fixed deposit rates in Kenya, to aid you in choosing an ideal financial institution. One of the simplest ways to grow and safeguard your money is by storing it in a fixed deposit bank account. With such an account, you are confident that your initial investment is secure, and you can expect assured returns.

You are probably wondering, what are fixed deposits? Fixed deposits are somewhat like savings accounts. The main difference between the two is that with fixed deposits, you are not able to access your money at any time you want. You are required to wait for an agreed fixed period like three months, or one year and so on. The longer you keep money in the account, the higher the interest obtained.

Most banks in Kenya have fixed deposit accounts. However, each bank has its requirements as to the minimum amount required to access a fixed account, and the amount of deposit the amount attracts. Let us examine different financial institutions and compare fixed deposit interest rates in Kenya.

1. Kenya Commercial Bank (KCB)

Kenya Commercial Bank offers competitive fixed deposit rates for both local and foreign currencies. The money has to stay in the fixed deposit rate account for the agreed duration. You get to benefit from KCB’s current fixed deposit interest rates of at least 6% per annum on your savings.

With the KCB fixed deposit rate account, you have the chance to determine the returns you get from your investment. Since the investment amount is not limited; you get to decide the initial amount to save. Additionally, there is no specific investment period, so you get to choose what works best for you between one to twelve months. KCB is one of the banks with the most flexible interest rates on fixed deposit accounts in Kenya.

2. Equity Bank

When it comes to fixed deposit rates in Kenya 2018 marked a new beginning for Equity Bank which adjusted its interest rates to mirror the latest Central Bank Rate (CBR) of 9.5%.For saving deposits, the bank’s minimum interest is 70% of the CBR, hence setting its current fixed deposit rates at a minimum of 6.65%.

The fixed deposit account is ideal for individuals who are interested in saving and earning appealing interest rates from their savings. If you are not a big fan of liquid cash, then this account is a great investment opportunity for you. The minimum initial amount is Kshs 20,000, and the fixed deposit account interest rates are negotiable. One of the best features of the Equity Bank fixed deposit account is it allows for premature withdrawals of your deposits. Therefore in the case of an emergency, you can withdraw money even before the agreed duration has reached.

3. Faulu Microfinance Bank Ltd (Faulu Kenya)

Faulu Kenya is a microfinance bank with one of the best fixed deposit interest rates. Account holders get high interests over a specific duration, with a set minimum opening amount of Ksh 5000.

4. I&M Bank

I & M Bank offers fixed deposit accounts for fixed contracted periods ranging from 1 month to 1 year. If you are in search of attractive savings growth opportunities, I & M is an excellent choice because they offer attractive interest rates. You can open your fixed deposit account in different currencies including Kenya Shillings, Dollars, Euros, South African Rand, and GB Pounds. The minimum deposit is Ksh. 50,000. I&M interest rates vary depending on the amount and tenor.

5. Barclays Bank

For people who plan on saving a lump sum of money over an extended period, Barclays is a bank with best fixed deposit rates. The fixed deposit account interest rates are tiered, meaning the higher the amount you save, the higher the interest you earn. The minimum deposit amount for opening this account is Kshs 50,000, and you get to invest the money for an agreed period of your choosing. Interest payments can be made directly to a Barclays account of your choice. Another advantage to the Barclays fixed deposit account is the fact that it is available in both Kenyan currency and foreign currencies. The bank account can also act as security if you plan on taking a loan from the bank.

6. Standard Chartered Bank

The Standard Chartered Bank has one of the most competitive fixed deposit interest rates in Kenya. The interest is calculated on a daily basis and is paid on the date of maturity. The minimum deposit amount is Ksh 100,000 and can be saved over fixed duration of one, three, six, or twelve months. The deposit account can act as security in case of an overdraft or if you need a loan. Your returns are guaranteed, and they can be re-invested upon your request or even earn interest as per tenure. Your statements and balance information are also available on request.

7. CFC Stanbic Bank

One of the perks of opening a CFC fixed deposit account is the fact that you don't have to pay any management fees on a monthly basis. The there is also no limit as to the maximum amount one can invest. The interest payable is disclosed to you at the time of opening your fixed deposit account. Savings are made over a period of one, two, three months, or one year. The interest rate does not change over the investment period. It remains fixed and is calculated and paid at the maturity stage.

8. National Bank of Kenya

The National Bank can attract some of the highest fixed deposit rates in Kenya. Mainly because there are two different types of fixed deposit accounts to serve different people's needs. The ordinary fixed deposit account has a minimum deposit amount ofKshs 20,000hence making it accessible to a significant percentage of the Kenyan population. This account allows investments of different durations.The high yield fixed deposit account is for individuals who are interested in investing from Kshs 1M and above. This account has an investment period of one year, and it attracts high interest returns. The interest rates are highly competitive and are dependent on the amount you choose to invest.

9. Kenya Post Office Savings Bank (Postbank)

The Postbank fixed deposit account has flexible deposit duration periods of three, six, nine months and one or two years as well. The interest rates are quite attractive depending on the amount of money you invest. The minimum deposit amount is Kshs 30,000,and the best part about this account is it could either belong to a single individual or even to a group of people. For groups like chamaas and Saccos, this could be the bank of choice for fixed deposit savings. Additionally, no monthly maintenance fee is charged, hence allowing you to save money without having to worry about spending extra.

10. NIC Bank

The NIC fixed deposit account is unique in that it is designed specifically for children and teenagers under the age of 18. The account allows parents a platform for saving money towards securing the future of their children. As children mature, they are educated on the discipline of saving and managing finances. The account holder is offered four free banker's cheques every year and has access to the bank's exclusive events. The minimum payable interest is set at70% of the current Central Bank Ratehence allowing for high returns. Opening an account costs Kshs 2,000, and the minimum deposit amount is Kshs 5,000. Also, no monthly fees are charged, incoming transfers are also free, and the account holder is allowed four free withdrawals yearly.

These are just some of the financial institutions in Kenya with the best fixed deposit account interest rates. However, there are more institutions out there with suitable fixed deposit rates in Kenya. Take note also that with many institutions, it is better to visit the premises physically and talk to an agent about your specific needs. That way you can negotiate your interest rates since the ones mentioned above are subject to change at any moment.